EDS loses out on UK Inland Revenue contract

The Inland Revenue in the UK confirmed it had not renewed an IT deal worth £3bn (€4.2bn) with Electronic Data Systems (EDS).

The 10 year Aspire technology contract went to a to a consortium led by Cap Gemini Ernst & Young.

EDS had run the Inland Revenue's tax and national insurance computer systems since winning the original £1bn (€1.4bn) contract in 1994.

However, the company came under criticism over its handling of the introduction of the government's welfare to work tax credit scheme.

The computerised payment scheme recently had crashed, leaving thousands of claimants relying on emergency handouts.

Cap Gemini, working with BT and Fujitsu- will take on 2,250 employees to cater for the new contract.